Want your say when it comes to a review of WLTP and vehicle taxes? Time is ticking…

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Author: | Updated: 07 Feb 2019 01:37

The BVRLA is urging industry colleagues to respond to a government consultation which closes on 17 February.

The consultation will review the impact the Worldwide harmonised Light vehicles Test Procedure (WLTP) has on CO2 emissions and how it should adjust Company Car Tax (CCT) and Vehicle Excise Duty (VED) accordingly when it is implemented from April 2020.

wltp3

What does WLTP mean and how will it affect lease prices?

It has concerned many that the government’s continued lack of alignment of its taxation and environmental policies will result in a failure to remedy the current vehicle tax regime.

In its response the BVRLA is calling upon government to:

  • Adjust future VED and company car tax bands for 2020 and beyond to account for the increase in WLTP-based CO2 figures
  • Provide a legacy CCT table for pre-April 2020 vehicles, freezing the rates at 2018/19 level
  • Provide a 4/5-year view of future company car tax and VED bands, enabling fleets and drivers to plan their vehicle choices
  • Ensure that all CO2-related taxes and charges (e.g. congestion zones, lease rental restriction) are treated consistently under WLTP

BVRLA chief executive Gerry Keaney said: “With the current tax regime incentivising drivers to opt-out of company car schemes and take cash allowances, there is a real danger that without a change in gear on tax we will see the demise of the company car and a missed opportunity to put cleaner vehicles on the road.

Fuel pumps out of service

Road to Zero: what you need to know

When government published its ‘Road to Zero’ strategy in 2018, it emphasised the need for the transition to zero-emission vehicles to be industry-led. The BVRLA and its members responded by launching the BVRLA Plug-in Pledge, outlining ambitions to see its members’ combined plug-in vehicle fleet size surge from 50,000 today to 720,000 by 2025.

Keaney continued: “With over five million vehicles on fleet, our members have demonstrated their commitment and capability to drive the ‘Road to Zero’ but we now need government to play its part by creating a vehicle tax regime that is fit-for-purpose. That should start by making the right tax adjustments to support a smooth transition to WLTP and adjusting the tax regime to incentivise the uptake of company cars.”

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